Pension funds invest EUR 175 mln in Estonia in 2018

Pension funds invested 175 mln euros in the Estonian economy in 2018. While 347 mln euros of the assets of pension funds had been invested in Estonia at the end of 2017, the number stood at 523 mln euros at the end of 2018, the Estonian Chamber of Commerce and Industry said LETA/BNS.

As of right now, 13.43% of the assets of pension funds have been invested in Estonia, which is also the largest indicator ever.

The bank to have invested the largest share of the assets of its pension funds in the Estonian economy is LHV with 304 mln euros, followed by Swedbank with 153 mln euros, SEB with 50 mln euros and Luminor with 15 mln euros.

The chamber observes and analyzes the investment of pension funds' assets in the Estonian economy from the beginning of 2016. Then only 5.48 percent of pension funds' assets had been invested in Estonia. The total volume of investments was the smallest in the first quarter of 2017, 5.01%.

From the second quarter of 2017 to the third quarter of 2018, there was growth during which investment volumes doubled. The largest growth figures were registered in the fourth quarter of 2017, when investment growth was over 2%.

According to the chamber, the positive trend started after law amendments with which the state alleviated the investment restrictions of pension funds.

EU economy’s future: slow but positive growthGrowth in all EU states will continue in 2019-20, though at a slower pace than before. The largest EU’s economies will grow at around 1,5-1,7%, mostly in Poland, Spain and Holland. The Baltic States’ growth will continue to be on the positive trend.